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In many particulate industries, one of the major unit operations used is fluidized bed drying process. In industries, which process large amount of solids, continuous dryers play significant role. The multistage fluidized bed dryer is adapted in research to improve the drying efficiency of final product. The moisture content is an important controlled variable in any drying process. In the present study, identification of three stage fluidized bed dryer by linear time-series models from experimental data has been done. The transfer functions and step response of three stages were identified. Based on state space model, linear quadratic controller was implemented for the identified model of multistage fluidized bed dryer in simulations. The controller was not implemented on the experimental setup.